Funding of $18 million in debt granted to Zeepay, aiming to intensify remittance services.
Zeepay, a leading company in Africa's digital remittance and mobile money market, has secured a significant $18 million debt funding. This financing, arranged by South Africa-based Verdant IMAP, is set to strengthen Zeepay's position in the market by enhancing liquidity, expanding cross-border payment capabilities, and supporting growth into new regions, including the Caribbean.
The funding will aid Zeepay in scaling its operations across Africa, enabling the company to boost working capital, deepen international partnerships, and accelerate mobile money adoption across over 20 countries where it operates.
Improved Liquidity and Transaction Capacity
The debt funding supports the seamless flow of remittances, ensuring reliability and scale in processing large transaction volumes. In 2023 alone, Zeepay handled $3 billion worth of transactions, and this funding will help sustain and grow such volumes.
Market Expansion Beyond Africa
With stronger capital, Zeepay plans to enter the Caribbean remittance corridors, extending its footprint internationally. This diversification enhances the company's reach and opens new revenue streams.
Competition and Innovation in Digital Finance
By enhancing cross-border payment infrastructure and mobile money services, Zeepay contributes to the broader ecosystem's maturation, pushing competitors to innovate and improving service options for underserved populations.
Strengthening Financial Inclusion
As Zeepay expands mobile money adoption, particularly in Africa’s underserved regions, it supports greater financial access, enabling more people to participate in the digital economy.
This development is part of a larger trend of growing fintech investments in Africa, where debt and equity funding are fueling startups that bridge mobile money and formal finance, contributing to a dynamic ecosystem that also includes companies like Djamo and Wave Mobile Money.
A Shared-Collateral Framework for Streamlined Fundraising
In addition to the debt funding, Zeepay has implemented a shared-collateral framework. This structure, part of Zeepay's strategy to scale its operations, allows new and existing lenders to share equal, first-priority claims on the same assets. The shared-collateral structure was created to streamline future fundraising for Zeepay, facilitating quicker access to growth capital.
The shared-collateral structure eliminates the need for complex renegotiations with new lenders, as a neutral security trustee holds the collateral. An independent agent also monitors the asset value daily in the shared-collateral structure. The onboarding of new investors is simple and transparent due to this structure.
However, no details about the specific terms of the debt funding were provided. Additionally, no new investors in Zeepay were disclosed as a result of the funding.
The funding will be used to strengthen Zeepay's mobile money float financing and cross-border payment solutions, but no information about changes to these solutions was provided.
With this strategic move, Zeepay positions itself as a leading player enhancing liquidity and service reach in Africa’s digital remittance and mobile money markets.
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